Earnings on Nondeductible IRA Contributions Are Allowed to Accumulate Tax-Free

question 61

True/False

Earnings on nondeductible IRA contributions are allowed to accumulate tax-free until they are withdrawn.

---

Definitions:

Multiple Cut-off Approach

A decision-making technique where alternatives are evaluated against a series of minimum criteria or thresholds, eliminated if they fail to meet any one of these.

Compensatory Approach

An approach where a higher score on a predictor may compensate for a low score on another.

Predictors

Variables or factors used to forecast or anticipate the outcome of a particular situation or behavior.

Unethical Selection

Practices in hiring that are morally wrong or unfair, such as discrimination based on non-job-related factors.